Question

The value-based investor's bid and asked price is _____ Treynor Model. a. smaller than inside spread...

The value-based investor's bid and asked price is _____ Treynor Model.

a. smaller than inside spread in

b. irrelevant to

c. determined within

d. given in

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans: The value based investor's bid and asked price is determined with in Treynor Model

Option c is correct.

According to Treynor Dealer model The value based transactor's price which is called as outside spread is much larger than inside spread.

it is not smaller than inside spread.

We have to calculate the bid ask price spread in this model, comparing dealer's inside spread and value based transactor's outside spread for generating market making position.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Currency Bid Rate Ask Rate Spread % of Spread US$ 5.20 C D 0.0545 £ E...
Currency Bid Rate Ask Rate Spread % of Spread US$ 5.20 C D 0.0545 £ E 6.70 F 0.0448 € 5.90 6.30 G H ZAR 0.38 I J 0.0952 CFA 0.11 0.15 K L The table above shows the interbank exchange rate of the GHC against its major traders. a. Complete the above table. b. Serwa Akoto, the CEO of SAA Limited, a Ghanaian manufacturing firm, wants to import manufacturing equipment worth US$1 million from the United States of America....
Selma wants to pay no more than $50 for a share of stock. The bid ask...
Selma wants to pay no more than $50 for a share of stock. The bid ask spread is $49 - $51. Selma should _________. A place a market order at the dealer’s bid price B place a limit buy order with limit price = $51 C place a limit buy order with limit price = $50 D place a market buy order
1. In a sealed??bid,second?price ?auction, you should bid A. your estimate of what others value the...
1. In a sealed??bid,second?price ?auction, you should bid A. your estimate of what others value the good at. B. the common value of the good. C. your highest value. D.one dollar more than your estimate of what the second-highest bid will be. 2. An auction in which the price announced by the auctioneer DESCENDS is called a A.Dutch Auction. B.Descending Option Auction. C.Sealed Bid Auction. D.English Auction 3.The ability to deter entry requires A. a good lawyer. B. a credible...
The bid-ask spread for Gopple Inc. is 3 cents. This means A. An investor doing a...
The bid-ask spread for Gopple Inc. is 3 cents. This means A. An investor doing a stock round trip will lose 3 cents per stock B. Dealer makes 6 cents when they buy and sell a stock. C. The current price is 3 cents more than the opening price today D. DMM sells to investors at 3 cents more than yesterday's closing price 12. You can buy shares in non-US companies in the US markets through which instrument A. Preferred...
The price leadership model does not assume which of the following? a. The price elasticity for...
The price leadership model does not assume which of the following? a. The price elasticity for the leader is greater than for the smaller firms. b. Rivals will know how to respond to price changes. c. The smaller firms are allowed to maximize their profits. d. The dominant firm maximizes its profits. Oligopolistic interdependence refers to which of the following? a. The need to pay attention to their internal costs b. The need to pay attention to their inputs c....
36-) Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and...
36-) Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase. Select one: a. speculators; arbitrageurs b. dealers; brokers c. central banks; treasuries d. brokers; dealers 38-) A country's currency that strengthened relative to another country's currency by more than that justified by the differential in...
1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dollars is $.7938 and...
1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dollars is $.7938 and its ask price is $.8100. What is the bid/ask percentage spread? 2.Chapter 3, Question 10. Indirect Exchange Rate If the direct exchange rate of the euro is $1.25, what is the euro’s indirect exchange rate? That is, what is the value of a dollar in euros? 3.Chapter 3, Question 11. Cross Exchange Rate Assume Poland’s currency (the zloty) is worth $.17 and the Japanese...
According to the value-based management model, what is the stock price per share given the following...
According to the value-based management model, what is the stock price per share given the following data? Year 1 Revenue 725.00 Fixed costs 100.00 Variable costs 300.00 Additional investment in NWC 3.00 Additional investment in operating long-term assets 80.00 Depreciation 75.00 Tax rate 0.40 The free cash flow is expected to grow at 8% from year 1 to year 5 and 6% after year 5 to infinity. WACCcomp =15%. Market value of the firm: Price per share Number of shares...
Consider a sequential trade model in which a security has an uncertain value. The value V...
Consider a sequential trade model in which a security has an uncertain value. The value V of the security can either be $150 or $250 with equal probability. The proportion of informed traders is 60%, whereas the proportion of liquidity traders is 40%. As usual, liquidity traders buy or sell with equal probability, whereas informed traders only buy when they know the security price is high, and sell when they know the security price is low. The probability that V...
Considering the imperfect information model, if the price level deceases by more than producers expected, the...
Considering the imperfect information model, if the price level deceases by more than producers expected, the producer Group of answer choices A)increases production. B)hires more workers. C)does not change production. D)decreases production.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT